After moving sharply lower in recent sessions, treasuries saw some further downside during trading on Monday on the heels of some upbeat retail sales data.
Bond prices moved modestly lower in early trading and remained stuck in the red throughout the session. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, edged up by 2.3 basis points to 1.923 percent.
With the modest gain on the day, the ten-year yield extended a recent upward move, reaching its highest closing level in well over a month.
The modest weakness among treasuries came on the heels of the release of a report from the Commerce Department showing an unexpected increase in retail sales in the month of April.
The Commerce Department said retail sales inched up by 0.1 percent in April following a revised 0.5 percent decrease in March.
The modest increase in sales surprised economists, who had expected sales to dip by 0.3 percent compared to the 0.4 percent drop originally reported for the previous month.
Core retail sales, which exclude sales of autos, building materials, and gas, rose by 0.5 percent in April compared to an upwardly revised 0.1 percent increase in March.
Paul Dales, Senior U.S. Economist at Capital Economics, said, "Overall, it doesn't look as though January's payroll tax hike put much of a dent in consumption in either the first or second quarters."
"Most recently, the hit to after-tax incomes has been cushioned by the plunge in gasoline prices that has left households with more cash to spend on other items," he added.
Trading on Tuesday could be impacted by the release of a report on import and export prices, although activity may be somewhat subdued ahead of the release of a slew of key economic data later in the week.
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Market Analysis
June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.